* Q2 profit $21 mln vs year-earlier loss $14.4 mln
* Net revenue up 11.9 pct to $1.09 billion
* Gross margin down 2 percentage points to 49 percent
NEW YORK (Reuters) - Levi Strauss & Co
reported a second-quarter profit, helped by higher sales to
store chains and in Asia and Europe, allowing it to mitigate
the damage to margins from higher cotton costs and
discounting.
The private company said second-quarter net income was $21
million, compared with a loss of $14.4 million in the
year-earlier quarter.
Revenue, which includes sales and licensing revenue, rose
11.9 percent to $1.09 billion.
Sales grew 19 percent in Asia and 17 percent in Europe; in
constant-currency terms, the increases were 12 percent and 9
percent, respectively.
In the Americas, sales were led by the company's namesake
jeans, offsetting a drop in sales of Dockers. Revenue in the
Americas was up 7 percent.
Gross margin was down 2 percentage points to 49 percent of
revenue because of higher cotton costs and an increase in
discounting.
Net debt stayed constant at $1.6 billion.
Levi's clients include department store chains such as
Macy's Inc, J.C. Penney Co Inc and Kohl's Corp
(Reporting by Phil Wahba; editing by John Wallace)
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